Persistent Net LossesOngoing net losses are a fundamental constraint: they erode equity, prevent internal funding of growth initiatives, and indicate the business model has not yet achieved sustainable profitability. Without structural margin improvement, losses will persistently limit value creation.
Deteriorating Negative Free Cash FlowWorsening negative free cash flow means operations consume cash rather than generate it, forcing reliance on external financing or equity issuance. Over months this weakens liquidity cushions and can constrain investment, making the company vulnerable if markets tighten.
Negative Return On EquityNegative ROE signals the company is not generating returns from shareholder capital. This structural shortfall undermines the case for new equity investment, can increase capital costs, and limits the firm’s ability to attract funding needed to scale or remediate losses.